{"id":581906,"date":"2023-02-23T00:00:00","date_gmt":"2023-02-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/23\/once-held-as-the-disrupter-to-the-global-meat-industry-what-does-the-future-now-hold-for-fake-meat-products\/"},"modified":"2023-02-23T00:00:00","modified_gmt":"2023-02-23T00:00:00","slug":"once-held-as-the-disrupter-to-the-global-meat-industry-what-does-the-future-now-hold-for-fake-meat-products","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/23\/once-held-as-the-disrupter-to-the-global-meat-industry-what-does-the-future-now-hold-for-fake-meat-products\/","title":{"rendered":"Once held as the disrupter to the global meat industry, what does the future now hold for fake-meat products?"},"content":{"rendered":"

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<\/span>Fake meat, false trend:<\/span> The rise and fall of two plant-based meat product companies <\/span>looking to disrupt the food industry, Beyond Meat and Impossible Food, is a meaty tale, featuring everything from the most successful IPO since the 2008 financial crisis to a nose-biting COO, and Kim Kardashian as chief taste consultant, as detailed in a <\/span>Bloomberg<\/a><\/span>long-read. <\/span><\/p>\n

What does the drastic fall in investment for two major fake meat producers reveal about the future of the industry? <\/span>Was fake meat just the latest foodie trend or does it still hold power and momentum to displace the world's USD 1 tn meat industry?<\/span><\/p>\n

Healthy for the body and the planet: <\/span>With a median carbon footprint 93% smaller than beef, according to a report from Johns Hopkins University cited by <\/span>the Guardian<\/a><\/span>, meatless burgers claimed to provide alternatives that would reduce greenhouse gas emissions, with German scientists making the claim that swapping 20% of beef for microbial protein could halve deforestation. Fake meat manufacturers also claimed that their products could help or solve a variety of health problems, including heart disease and diabetes.<\/span><\/p>\n

The big players: <\/span>Beyond Meat, established in 2009, and its rival Impossible Foods, established in 2011, were the starting point for a big investment in the fake meat hype. Incorporating heme and soy leghemoglobin ingredients in their recipes, the companies created burgers that could \u201cbleed\u201d and tasted like real beef. When taken to market, the burgers appealed to not just veggies and vegans, but the masses. <\/span><\/p>\n

Investors bought into the hype.<\/span> By 2018, Beyond\u2019s IPO gave the company a USD 1.3 bn valuation, while Impossible had raised USD 183 mn without selling even a single burger and fast-food chains added products to their menus. 2021 also saw Daring Foods, a meatless chicken nugget startup, raise USD 65 mn at a valuation of more than USD 300 mn, reported <\/span>Forbes<\/a><\/span>. Even McDonald\u2019s introduced the <\/span>McPlant<\/a><\/span>, in partnership with Beyond.<\/span><\/p>\n

Covid gave a push to fake meat: <\/span>As consumers with more time and money took a chance on fake meat products, supermarket sales of plant-based meat products grew nearly 200%, Forbes said, helping the sector secure more than USD 2 bn in funding.<\/span><\/p>\n

We have our own home-grown plant-based product sector here in Egypt:<\/span> Good Earth has been in the market since 2007, offering meatless and vegan options and can be ordered from <\/span>Quanta<\/a><\/span>, a supplier of plant-based beverages and foods in Egypt (they also offer Beyond Burgers). Egyptian startup <\/span>NOT<\/a><\/span> sells locally sourced, plant-based products chicken nuggets, with cooking recipes to match.<\/span><\/p>\n

As competitors' products flooded the market, the market became stagnant. <\/span>Sales of non-meat products plummeted by 14% in 2019, reported Bloomberg, and retail sales have been slowing since. As of 17 January 2023, Beyond\u2019s stock price was hovering around USD 16, down about 76% from a year earlier and roughly 93% from its peak in the summer of 2019. Impossible, a private company, is trading at around USD 12 a share, according to Bloomberg, about half the price at which it traded during its last fundraising round. McDonalds, KFC and Dunkin\u2019 Doughnuts have all removed the products from their offerings.<\/span><\/p>\n

Is it really better for you?<\/span> Beyond\u2019s founder Ethan Brown, blames bad-mouthing from the USD 270 bn US meat industry \u2013 it\u2019s no lie the meat industry has sponsored ads and lectures supporting animal products. \u201cThey are doing their very best to suggest that our process is somehow unhealthy or that our products are full of chemicals,\u201d Ethan says, claims he believes are untrue. <\/span><\/p>\n

Alternatives to red meat<\/span> <\/span>may seem healthier<\/span>, says Dr David Katz, founding director of Yale\u2019s Prevention Research Centre, tells Bloomberg, but Beyond and Impossible\u2019s products are \u201cultra-processed\u201d and full of ingredients like pea protein, potato starch, and potassium chloride. While studies have shown that replacing red meat with nuts, legumes, and other plant foods can lower mortality and chronic disease risks, it\u2019s not possible to declare that processed burgers made with purified soy or pea protein will have the same benefits, reports the <\/span>New York Times<\/a><\/span>, quoting Dr Frank Hu, chairman of the nutrition department at the Harvard TH Chan School of Public Health.<\/span><\/p>\n

The meaty sizzle: <\/span>On the whole, non-animal ingredients make up the majority of the ingredients in meats. But processed ingredients, oils, starch, and cellulose have all been added to produce that meaty flavor and sizzle when fried. According to Bloomberg, Dippin' Dots, tiny ice cream beads that are frozen with liquid nitrogen and come in flavors like cotton candy, are the inspiration for Beyond. When processed into \u201clittle pellets or cryogenically frozen balls of fat,\u201d such as refined coconut oil, the fat is purchased by Beyond and sent back to be combined with other ingredients like water, rice protein, cocoa butter, methylcellulose, and more.<\/span><\/p>\n

Similar to milk substitutes, meatless products aimed to become household staples. <\/span>However, repeat sales of fake meat have not been successful.<\/span> <\/span>Plant-based dairy and milk alternatives have captured 15.2% of total sales in the market, according to <\/span>Forbes<\/a><\/span>, whereas plant-based meat makes up less than 1% of all meat consumed in the US. After over ten years in the market, fake meat appears to be more of a niche category than a disrupter of an entrenched industry, Bloomberg suggests. <\/span><\/p>\n

The market is already moving on<\/span> \u2013 with tank-grown cellular meat raking in USD 2.6 bn in funding, including from individuals who were Beyond and Impossible\u2019s original investors. <\/span><\/p>\n

Some producers are even looking to incorporate meat:<\/span> In 2020, meatless producer, the Tattooed Chef held an IPO with a USD 1.7 bn cap, according to <\/span>Forbes<\/a><\/span>. After losing almost half of its value in just two years, the company is now considering the unthinkable for a plant-based producer: selling meat. \u201cIt opens up a lot more avenues and a lot more doors,\u201d CEO Salvatore Galletti told Forbes.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Similar to milk substitutes, meatless products aimed to become household staples<\/p>\n","protected":false},"author":1,"featured_media":581907,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7785],"tags":[633,564],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-581906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-food","tag-enterprisepm","tag-food","wpautop","entry"],"acf":{"mongo_id":"0e63c936-d10b-4c65-856d-49fb1e077b59","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/2\/Fake-Meat_1600.jpg","photo_position":"below","homepage_title":"","full_issue_title":"","related_issue":[581889],"teaser":"Similar to milk substitutes, meatless products aimed to become household staples","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/3\/.7afac873-0293-49b7-bdc3-a32ebd0c42d0.mp3"},"yoast_head":"\nOnce held as the disrupter to the global meat industry, what does the future now hold for fake-meat products? 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